A quarter of institutional investors considering OCIO in next 24 months
According to research from Cerulli Associates, 25% of institutional asset owners indicated they are considering outsourced chief investment officer (OCIO) services over the next 24 months. Inflation, interest rate hikes, market volatility, and the shifting implications of geopolitical conditions are luring asset owners to the outsourced CIO model for the management of partial portfolios for alternative and private asset classes in which they lack the necessary level of expertise.
According to research from Cerulli Associates, 25% of institutional asset owners indicated they are considering outsourced chief investment officer (OCIO) services over the next 24 months. Inflation, interest rate hikes, market volatility, and the shifting implications of geopolitical conditions are luring asset owners to the outsourced CIO model for the management of partial portfolios for alternative and private asset classes in which they lack the necessary level of expertise. This is according to Laura Levesque, associate director of institutional at Cerulli.
Roughly 14% of asset owners are considering outsourcing their CIO responsibilities, and 11% are considering expanding the role of their current OCIO from managing a partial portfolio, or sleeve, to managing a total portfolio or adding other in-house managed asset pools, according to the research. Only 6% expect OCIO services to be reduced or discontinued.
Industry experts and consultants say OCIO adoption is likely to increase in order to adapt to volatile market conditions and provide expertise in alternatives.
